EUROPEAN COMMISSION has opened an investigation into the restructuring of Olympic Airways and its relaunch as Olympic Airlines following concerns that State funds will be used to help complete the process.
In the past the Greek Government has injected significant funds into Olympic to keep it solvent but now, under European law, state aid of this kind is forbidden.
The Government claims that the restructuring will be supported by the privatisation of the national carrier, with funds being used to clear Olympic Airways debt and staff redundancy costs.
However, the Commission remains concerned over the process under which the Government intends to reduce its stake in the new national entity Olympic Airlines.
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